Wednesday, January 02, 2008

NOTHING WRONG WITH A RECESSION

I am selling a little of my ultra short positions here. Taking a little profit on QID SRS FXP SKF.

The Chief Marketing Officer at NTRI recently spent $2 million of his own money to buy stock. That says a lot. NTRI is a strong buy under $30.

Now that we've hit $100 oil I think we turn back. I think oil will trade as low as $70 this year especially on the back of a slowing global economy.

The drop in the manufacturing index is essentially telling us we are in a recession. How many more signs do we need before we accept reality. There is nothing wrong with a recession. It's part of the business cycle. Accept it and move on. Stocks will eventualy become super cheap. There will be lots of opportunities to make money on the long side. Financials will eventually bounce back. So will real estate.